A Nebraska man is on the brink of reclaiming ownership of his home, years after it was seized due to a $588 tax debt, according to one of his legal representatives on Thursday.
Kevin Fair, a resident of Scottsbluff, has been embroiled in a legal battle since 2018, when he lost the title to his home of nearly thirty years because of outstanding property taxes amounting to $588. Scotts Bluff County proceeded to sell the tax lien to a private investor, a move permitted by Nebraska law at the time.
Despite being unable to repay the debt along with accumulated interest and fees, Fair was granted permission to remain in the house while the legal proceedings unfolded. However, in 2022, the Nebraska Supreme Court ruled against Fair. A year later, the U.S. Supreme Court intervened, instructing the state court to reconsider the case. Subsequently, in August, the Nebraska Supreme Court determined that Fair should be allowed to retain ownership of the property.
Fair’s legal representation, Pacific Legal Foundation, reported that an amicable resolution had been reached between Fair and the investor, effectively bringing the protracted legal dispute to a close. Christina Martin, a senior attorney at Pacific Legal Foundation, emphasized that the case underscored the constitutional protection of home equity. She noted that the ruling was crucial in safeguarding Fair from the imminent risk of homelessness.
A request for comment from an attorney representing Scotts Bluff County went unanswered on Thursday.
Fair and his spouse, Terry, had previously cleared the mortgage on their Scottsbluff residence by the early 2010s. However, following Terry’s multiple sclerosis diagnosis in 2013, Kevin left his job to care for her. The couple subsequently fell behind on their property tax payments, resulting in a $588 debt.
The county placed a lien on the property and published the delinquency notice in local newspapers. In 2015, the tax lien was sold to a private investor, who covered the home’s taxes for a period of three years. When the investor requested the Fairs to settle the accumulated $5,268 in taxes, interest, and fees, they were unable to meet the demand. Consequently, Scotts Bluff County transferred the title and equity to the investor in 2018.
Fair’s lawsuit argued that while the state was entitled to collect its debt, it should not have the authority to seize the property or any equity exceeding the debt amount, which in this case was $54,000.
The recent court victory for Kevin Fair comes amidst personal tragedy, as his wife passed away in 2019, and he suffered a stroke just last month. Martin highlighted the urgent need for a ramp to be constructed at Fair’s residence to accommodate his mobility. A GoFundMe initiative had amassed close to $10,000 by Thursday afternoon.
Nebraska took significant legislative action in 2023 to ensure that homeowners are shielded from the peril of losing their equity due to unpaid property.
